Judge denies request to delay payday lending rule

Aug. 15, 2018 -- A federal judge again sided with consumer groups when he denied a request by the BCFP and a group representing payday lenders, to delay the agency’s payday lending rule.

The Community Financial Services Association of America filed suit in April challenging the agency’s rule, which was issued by former agency Director Richard Cordray.

The agency, now led by Acting Director Mick Mulvaney, sided with the payday lenders, saying that the Bureau is revisiting the rules and asked that the lawsuit and the rules be delayed. The judge agreed to stay proceedings in the lawsuit but denied a request to delay the rule’s effective date.

In a comment letter to BCFP, NASCUS noted that it “shares the Bureau’s commitment to ensuring that consumers are protected from predatory and abusive lending practices.” However, NASCUS further expressed concern that the rule “will limit the ability of state-chartered credit unions to administer innovative alternative short dollar loan programs.”

In January, BCFP stated it intends to engage in a rulemaking process so that it may reconsider the payday rule.